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ENTREPRENEURSHIP
DEEPAK BAJAJ
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ENTREPRENEURSHIP
Chapters
1. Entrepreneur & Entrepreneurial Management
2. Entrepreneurship Development
3. Project Management
4. Product Selection
5. Business Model
6. Project Design & Network Analysis
7. Incentives & Subsidies
8. Statutory Requirements
9. Current Trends
10. Case Studies of Leading Entrepreneurs
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ENTREPRENEUR & ENTREPRENEURIAL
MANAGEMENT
Session I
Business Entrepreneurship, EntrepreneurSession II
Characteristics & Traits of Entrepreneur
Session III
Factors Influencing Entrepreneur
Session IV
Causal Reasoning & Effectual Reasoning
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SESSION I(Business Entrepreneurship, Entrepreneur)
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ENTREPRENEUR
In the process of producing good or providing services, manyfunctionaries are generally involved. Inventorgets the idea of anew product or new service, capitalist provides the fundsneeded, specialist workers provide whatever services orexpertise needed to turn the idea in to a product or service for
sale in the market place.Managers plan the sequence of action,direct the workers to produce things, manage finances &marketing etc., to make these combined efforts successful. Yetthere is one person who initiates the action, binds every thingtogether & makes the entire system function as an enterprise.
He is the Entrepreneur, without whom the enterprise would nothave taken off.
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Entrepreneur is viewed as an initiator of action, stimulator ofsocial economic changes & a harnesser of resources & factorsof production to create wealth. Entrepreneur is one whodistinguishes as a person & must be a visionarycarrying dreams& desires to achieve & lead his enterprise & men to success. Heis not an inventor, but an innovator with outstanding
leadership qualities.Entrepreneur is an important input in economic development ofa region; he is the focal point in fields of economics. He is acritical factor in socio-economic changes; he is the key personwho envisages new opportunities, new techniques, new lines of
production, new products & co-ordinates all other activities.
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Entrepreneurship is neither a science nor an art, it is a practice, ithas a knowledge base. Knowledge in entrepreneurship is a meansto an end. Entrepreneur in essence, is one who can dream,desire, change & succeed in spite of all odd & adversities.
Intense urge to exercise power over things & objects is an intrinsicquality of an entrepreneur. Sociologists consider him as asensitive energizer in modernization of the society he lives in,his motivation & aspirations are conducive to development.
ORGANIZATION
MANAGEMENT
RISK
INNOVATION
ENTERPRISE
URGE
SKILL
VISION
GROWTH
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Definition of an Entrepreneur
Term entrepreneur is defined in a variety of ways, yet no single
expression has been found to define the precise skills &abilities that make a person a successful entrepreneur. Theconcept varies from country to country & period to period. Toarrive at some description of entrepreneur, let us study theviews of some known management gurus: -
J. A. Schumpeter A person who introduces innovations &changes is an entrepreneur.(He treated an entrepreneur as anintegral part of economic growth).
Adam SmithEntrepreneur is a person who provides capital
without taking active part in the leading role in an enterprise.Webster Entrepreneur is one who is endowed with more than
average capacities in risk of organizing & coordinating variousfactors of production.
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Peter Drucker Entrepreneur is one who always searches forchange, responds to it & exploits it as an opportunity.Innovation is a specific tool of entrepreneurs, the means by
which they exploit change as an opportunity for differentbusiness or enterprise.
Dewing The function of an entrepreneur is one that promotesideas in to business.
Frank Young Entrepreneur is a change agent.Francis A Walker True entrepreneur is one who is endowed
with more than average capabilities of organizing &coordinating various factors of production.
New Encyclopedia Britannica Entrepreneur is an individualwho bears the risk of operating a business in the face ofuncertainties about the future conditions.
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Qualities of entrepreneur have been perceived in many differentways, but the four key elements those are always involved in itare (i) Innovation, (ii) Risk taking, (iii) Vision & (iv) Organizingskill. All these four elements are interrelated & form acontinuous process in business. Entrepreneurial visionencompasses relentless pursuit for operational excellence,innovative technology & being responsive to the needs of themarket place
RISK TAKING INNOVATION
VISION ORGANIZING SKILLCHARACTER
ETHICS OPERATIONAL
EXCELLENCE
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Stages of Entrepreneurial Process
Entrepreneurial process is a leadership function which centresround the dynamics of entrepreneurial growth & change. It is a
process comprising several distinct stages. The 1st stage in the entrepreneurial process is some
change in socio-economic environment leading to changesin every aspect of life. Interalia, the change creates needsfor new goods & services.
The 2nd stage is by starting a new venture.
The 3rd process is intrapreneurship. It is the process ofextending the enterprise domain of competence byexploiting new opportunities through new combinations of
its resources. The 4th process is coordinating the varied activities to
achieve the entrepreneurial goal.
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Entrepreneurial Structure
Structure represents the formal, official task relationship ofpeople in entrepreneurial activities.
In entrepreneurial activity, policies, programs, practices &measurement make possible for innovation & growth. Theycreate proper attitude & provide proper tools. Entrepre-
neurial activity confines to the task of planning, directing,controlling, marketing, leading, motivating & channeling theactivities of individuals & the group towards entrepreneurialgoal. Structure & interpersonal relationship should be suchthat they allow people to be entrepreneurs.
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STRUCTURE
PEOPLE TECHNOLOGY
EXTERNAL
ENVIRONMENT
ENTREPRENEURIAL - STRUCTURE
RELATIONSHIP
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CLASSIFICATION OF ENTREPRENEURS
The most common classification rests on the business type.Under this classification we have: -
Business Entrepreneur-He is an individual who conceives an idea for a new product or
service & then creates a business to materialize their idea intoreality. He taps both production & marketing resources to
develop a new business opportunity.Trading Entrepreneur-
He undertakes trading activities as his enterprise & does notconcern himself with manufacturing work. He identifies
potential market, stimulates demand for his product line &creates a desire & interest among buyers to go in for hisproducts.
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Agricultural Entrepreneur -
He undertakes agricultural activities which may includeharvesting & marketing crops, fertilizers & other agricultural
inputsService Entrepreneur -
He has interest in providing one or many types of connected
services to the customers. He searches for potential avenueswhere customers are seeking convenience in their day-to-dayactivities & promptly attends to their needs. He creates &expands his customer base & maintains regular contact with hiscustomers.
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Industrial Entrepreneur
He is essentially a manufacturer who identifies the potentialneeds of customers & tailors a product or service to meet
marketing needs. He is a product oriented man who starts anindustrial unit because of the possibility of making some newproduct.
Corporate Entrepreneur
He is a person who demonstrates his innovative skills inorganizing & managing corporate undertaking a form ofbusiness organization in which he plans, develops & manages acorporate body.
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ENTREPRENEURSHIP
Entrepreneurship is the process undertaken by an entrepreneur
to augment his business interests. It is an exercise involvinginnovation & creativity that will go towards establishing theenterprise. Entrepreneurship in effect is the creation of newenterprise.
Entrepreneurship is a composite skill, the resultant of a mix ofmany qualities & traits imagination, readiness to take risks,ability to bring together & out to use various factors ofproduction, capital, labour, land, government approvals as alsoability to mobilize scientific & technological advances.
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When an enterprise is in the process of being created by anentrepreneur, it is often referred to as a new venture. Newventures typically fall in the category of small businesses &
is generally called small business owner.Small Businesses are considered to be independently owned
company that employs fewer than 500 persons.
ENTREPRENEUR ENTREPRENEURSHIP ENTERPRISE
OBJECTPROCESS OF ACTIONPERSON
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Concept of Entrepreneurship
Entrepreneurship is the propensity of mind to take calculatedrisks with confidence to achieve a pre-determined business or
industrial objective. In substance it is the risk taking capacityof an individual broadly coupled with capability to makecorrect decisions.
An enterprise finds manifestation in different ways.
Capacity to take risk independently & individually with aview to making profit,
Seizing opportunity by way of producing & or marketinggoods & commodities to meet the expanding &
diversifying actual & potential needs & demands of thecustomers is what constitute the entrepreneurialmaterial.
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Promoting Innovation: Assessing EntrepreneurialOpportunities
In his book Innovation & Entrepreneurship, noted management
consultant & writer Peter Drucker observes, Innovation is thespecific tool of entrepreneurs, the means by which they exploitchange as an opportunity for a different business or differentservices.
Understandably it is difficult to be an entrepreneur withoutengaging in at least some innovation, since merely duplicatingwhat is already being done will usually attract insufficientcustomers.
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OPPORTUNITY
CONDITIONS
NEW
INVENTIONS
HIGHLY
INNOVATIVE
MODERATELY
INNOVATIVE
SLIGHTLY
INNOVATIVE
COPYCAT
Risks Very high High Moderate Moderateto Low
Very high
Evaluation Verydifficult
Difficult Somewhatdifficult
Easy Easy
Profitpotential
Very high High High toModerate
Moderateto low
Low to nil
LEVELS OF INNOVATION
OPPORTUNITY CONDITIONS ASSOCIATED WITH
NEW VENTURE INNOVATION
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Economic & Social Contributions of Entrepreneurship
Substantial economic & social contribution by entrepreneurs &
the small businesses it generates has always been wellrecognized & has been receiving due attention from scholars &the popular media. Contributions associated withentrepreneurship in the areas of economic growth, innovation,employment opportunities, career alternatives for women &
minorities & home based business can be listed as follows: -
Economic Growth
Innovation
Employment opportunities
Opportunities for Women & Minorities Home-based Business
Growth of Entrepreneurship in India
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Growth of Entrepreneurship in India
India has a proud record of entrepreneurship in IT & related sectors.We have to now endeavour in other segments of science &technology. SSI (Small Scale Industries) platform is an ideal nursery
for testing out new sciences & technologies.However, in spite of favourable policies, govt. support, change inattitude of the society, the growth of entrepreneurship in Indiasuffers due to certain factors inherent in our social system.
Discouraging social factors unfavourable family background,family burdens, low literacy, dual role of women, disparities due tosex, caste, custom, lack of attitude, spirit, urge etc.
Discouraging economic factors inadequate infrastructuralfacilities, shortage of capital, shortage of technical labour, lack of
transportation & communication facilities, absence of regular &cheap power supply & raw material etc.
Discouraging environmental factors lack of security, absenceof ideal market conditions, red tapism in administration,complicated procedures, lack of stability in state & central
governments.
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